Why might develop economies want to outsource manufacturing another jobs to developing economies

Social Studies

1 answer:

netineya [11]3 years ago

3 0

Answer:

Developed economies want to outsource manufacturing another jobs to developing countries mainly due to low tax rates and cheaper labor.

Explanation:

Outsourcing has become a common practice for multinational firms and since then, it has also been a widely debated topic. Multinationals tend to outsource their manufacturing to developing economies mainly because the governments of developing economies offer them low tax rates and other deals in order to attract them into investing in their countries. Another reason is that labor is usually cheaper in developing economies, so their manufacturing costs decrease.

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